Cars.com Inc (CARS)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total current assets	US$ in thousands	214,330	199,897	178,059	177,171	178,438	189,336	157,309	144,651	148,627	154,518	137,662	138,403	147,437	161,710	162,277	158,238	178,081	154,049	141,522	291,287
Total current liabilities	US$ in thousands	116,885	111,389	116,585	109,364	145,748	130,965	120,563	107,348	106,012	106,229	84,825	95,802	94,290	96,387	95,972	98,422	90,368	112,876	94,999	98,310
Current ratio		1.83	1.79	1.53	1.62	1.22	1.45	1.30	1.35	1.40	1.45	1.62	1.44	1.56	1.68	1.69	1.61	1.97	1.36	1.49	2.96

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $214,330K ÷ $116,885K
= 1.83

The current ratio of Cars.com Inc has shown fluctuations over the past few years, starting at a high of 2.96 on March 31, 2020, and decreasing to a low of 1.22 on December 31, 2023, before increasing again to 1.83 on December 31, 2024. This ratio indicates the company's ability to cover its short-term liabilities with its current assets.

The general trend suggests that the company's current assets have not consistently kept pace with its current liabilities, as the ratio has fallen below 2 in several periods. This could raise concerns about the company's liquidity and its ability to meet its short-term obligations.

While the current ratio has improved in recent periods, hovering around 1.5 to 1.8, it is still below the ideal ratio of 2 or higher, which is typically considered a benchmark for a healthy liquidity position. This suggests that Cars.com Inc may need to closely monitor its liquidity position and ensure it can meet its short-term obligations as they come due.

In conclusion, based on the current ratio trend, Cars.com Inc may need to focus on managing its current assets and liabilities effectively to maintain a strong liquidity position in the future.